Remuneration guide
2015-16
Remuneration is defined as payments made to
or for the benefit of a worker, but it’s not just
wages or salary you need to include in your
remuneration return and reconciliation
statement. Benefits to workers include items
such as superannuation contributions, fees or
bonuses, footwear, uniform, clothing and/or dry
cleaning allowances and living away from home
allowances. There are more than 60 allowances
or benefits that could make up the
remuneration you pay your workers. Some
areas that ReturnToWorkSA (RTWSA) has
identified that employers sometimes overlook
include:
 understating superannuation and gross
wages
 not including payments to subcontractors
who are taken to be workers under the Act
 remuneration that is not verified against
original records.
A list of payments made to a worker in your
employment is outlined in this booklet. This will
help you calculate the premium payable and
make your declaration of total remuneration
paid to workers employed by your business.
Note: The following information has been
provided as a general guide to what is and is
not included in remuneration. It does not limit
the term ‘remuneration’ for ReturnToWorkSA
premium purposes. Information (including
dollar amounts and any figures) are subject to
change.
Remuneration and Goods and Services Tax
(GST)
In relation to salary sacrifice benefit(s) or fringe
benefit(s), ‘remuneration’ is the GST-inclusive
value of the benefit(s) (i.e. cost of the
acquisition of the benefit by the employer (after
deducting input tax credits to which the
employer is entitled on account of the
acquisition of the benefit) plus GST paid by the
employer to the Australian Taxation Office).
In the case of payment(s) to contractors as a
worker as defined under the Act, ‘remuneration’
is the GST-exclusive amount of the prices paid
by the employer to the contractor (i.e. amount
paid to the contractor less any amount paid to
the contractor on account of GST less any input
tax credits to which the employer is entitled in
relation to the acquisition of the contractor’s
services).
Remuneration – items that are included or
excluded
The items listed below are items included within
the term 'remuneration' unless where
specifically shown as being excluded. If you are
making payment(s) to or for the benefit of a
worker that are not listed, contact RTWSA on 13
18 55 for further information.
Accommodation allowance
An amount paid to or for the benefit of a
worker in respect of the cost of accommodation
at a hotel, motel, guesthouse or other
temporary lodging, while the worker is absent
from their usual residence in the course of
employment during the financial year
concerned and at a rate that does not exceed:
1) the total reasonable amount for daily travel
allowance expenses using the lowest
capital city for the lowest salary band for
the financial year determined by the
Commissioner of Taxation of the
Commonwealth,
2) if no determination referred to 1) above is
in force, the rate prescribed by the
regulations under the Pay-roll Tax Act
2009.
An allowance in the form of a payment paid to
or for the benefit of a worker (including a Living
away from home allowance or travelling
allowance) is included as an accommodation
allowance provided it has the following
characteristics:
 it is an allowance (not a direct
reimbursement of an expense incurred by
the worker)
 it is a payment made by an employer to a
worker on the grounds that the
circumstance of a particular employment
event (i.e. unable to return home at night)
requires the worker to use accommodation
at a place other than their normal place of
residence where the employer is bound by
an award, or registered industrial
agreement or industrial agreement relating
to an award to make the payment to a
worker
 the allowance is to provide money for
accommodation expenses and related
expenses (e.g. meals and incidentals).
Note: The fact that the worker may not choose
to use the full amount of the allowance (e.g. a
worker may choose to sleep in the cabin of the
truck whilst away from home) does not in itself
stop the payment from being treated as an
accommodation allowance. It is the ‘character’
of the payment, determined by the intent of the
employer to relieve the worker of the burden of
accommodation expenses, which is the
determining factor.
A payment by way of an accommodation
allowance is not included if the payment is
made at the rate not exceeding the relevant
rate for a particular period as determined by
the Commissioner of Taxation of the
Commonwealth or if no determination is in
force, the rate prescribed by the regulations
under the Pay-roll Tax Act 2009. This rate is
determined normally in June each year and sets
the amount to operate from 1 July.
The following Table sets out the rate for the
purposes of ‘accommodation allowance’ in the
calculation of ‘remuneration’ for the purposes
of the premium payable by an employer under
the Return to Work Act 2014 (or former Act).
Effective date
1 July 2015 (onwards)
1 July 2014 to 30 June
2015
1 July 2013 to 30 June
2014
1 July 2012 to 30 June
2013
1 July 2011 to 30 June
2012
1 July 2010 to 30 June
2011
Accommodation
allowance not to exceed
$255.45 (per night)
$253.25 (per night)
$250.85 (per night)
$248.25 (per night)
$238.10 (per night)
$227.25 (per night)
Annual leave
Payment(s) that are ordinarily are paid together
with leave loading of 17.5% where applicable.
This includes any payment to a worker in lieu of
annual leave foregone or deferred (except a
termination payment from 1 July 1992). This
includes annual leave payments made to a
worker who has a claim for compensation and is
receiving (or has received) income maintenance.
Back pay
Any payment in arrears, which is made to
workers or ex-workers for work previously
carried out. This includes retrospective
payments due as a result of award rate
increases or national wage increases.
Bonuses
Gratuities or rewards paid or provided by the
employer over and above a fixed salary or
wage. This includes non-business related travel,
such as the cost of fares, accommodation, meals
and incidentals paid by the employer for the
benefit of a worker. Excludes payments as
rewards or prizes provided by any organisation
such as a distributor or trade association (e.g.
sales targets met, apprenticeship awards) paid
by but not originating from the employer and
travel undertaken by a worker relating to the
employer’s trade or business (e.g. conference or
trade fair).
Call out or call back allowance
An amount paid to compensate for working
outside of normal work hours, or inconvenience
experienced to return to work (outside normal
working hours e.g. TV technicians, maintenance
workers, medical staff etc). This may be in
addition to any overtime paid.
Clothing allowance
An amount paid to enable purchase of clothing,
or to compensate for any wear and tear of
clothing, whether or not worn at work. Excludes
payment(s) which is a reimbursement to the
worker for specific expenditure.
Club subscriptions
An amount paid to or on behalf of a worker, for
membership of any club or association.
Excludes any club subscription where it can be
reasonably demonstrated that the payment is a
business-related expense or where the worker's
membership is in the interests of the employer's
trade or business.
Commission
Payments, usually to sales or marketing
personnel, made in addition to any salary
retainer, for units sold or sales targets achieved.
Includes bonuses or ‘spotter's fees’ paid to nonmarketing employees.
Credit units (trade dollars)
From 1 November 1994, all payments qualifying
as credit units including trade dollars (‘credit
units’) arising from a barter or counter trade
transaction are included. The value of any credit
unit is valued as equal to one Australian dollar
(or another value where it is established, to
RTWSA’s satisfaction, a particular organisation's
credit units are being traded consistently at that
value).
Dirt money
An amount paid for work performed in a dirty
or unpleasant environment (e.g. boiler scraping,
handling toxic chemicals etc.), sometimes
referred to as ‘danger money’.
Disability allowance
An amount paid to compensate for lack of
facilities or inconvenient working conditions
(e.g. exposure to elements, distance to travel to
work, remote location of workplace).
Dry cleaning
Payments made by the employer to the workers
to cover cleaning of uniforms or other clothing.
Excludes payment(s) made as a reimbursement
to the worker for specific expenditure.
Entertainment allowance
An amount paid to cover expenditure for
entertainment of clients or business associates.
Includes entertainment that takes place at the
worker's home or another venue outside
business premises.
Fares for travel
An amount paid to a worker for nonbusiness/work related travel. Payment includes
the cost of obtaining passports, visas, medical
certificates and travel insurance. The payment is
included whether or not the worker personally
undertakes travel or whether the payment is
used to finance the travel of another person
(e.g. a member of the worker's family). Excluded
if the payment is reimbursement to the worker
for specific expenditure on business-related
travel.
First aid allowance
An amount paid to a worker, qualified or
competent to administer first aid, for being on
standby to treat an illness or injury at work.
Follow the job allowance
An amount paid to a worker to compensate for
the need to work away from home at various
locations. (e.g. prospecting camp, shearing
team, circus, travelling trade fair).
Employee (worker) incentive plan contributions
Fringe benefits
Payments paid by an employer as a benefit that
is part of the worker's reward. These payments
are to be included where the fringe benefit is of
a quantified monetary value. Any fringe benefit
tax paid by the employer is not a part of a
fringe benefit.
Industry allowance
An amount paid to a worker in a specific
industry, or working under a specific industrial
award e.g. building and plumbing industry
allowances.
Footwear allowance
An amount paid to purchase and maintain
footwear whether or not used at work (e.g.
safety boots, dancing shoes). Excluded if
payment is a reimbursement to the worker for
specific expenditure on footwear intended to be
worn at work.
Health insurance
An amount paid by the employer to a health
insurance fund for the benefit of workers.
Includes any ‘top up’ payments by the employer
to cover the difference between the amount
billed by a medical provider and that paid by a
health insurance fund. The gross amount of
premiums paid by the employer is included as
remuneration. Excluded are the proceeds of an
insurance claim.
Higher duty allowance
An amount paid to a worker who temporarily
fills a position.
Holiday pay
An amount paid to a worker taking recreation
leave and may be paid together with a leave
loading e.g. 17.5%. Includes any payment
(except a termination payment from 1 July 1992)
to or for the benefit of a worker in lieu of
holiday pay foregone or deferred.
Home entertainment allowance
An amount paid to the worker to cover
expenditure for entertainment of clients or
business associates at the worker's place of
residence.
Incentives
Instructor’s allowance
An amount paid in recognition of any
qualifications or experience as an instructor,
trainer, lecturer or adviser, or for work
performed in any of these categories.
Leave loading
An amount paid in addition to, and usually
together with, any payments made to a worker
for recreation leave. The payment is generally
17.5% of leave pay, but may vary where the
payment is made outside of an award or
industrial agreement.
Life assurance
Any premium or lump sum paid on behalf of a
worker to a life insurance company for a policy
of life insurance. The proceeds of any insurance
policy are not remuneration and:
 includes premiums paid on any investmenttype policy such as an Insurance Bond or
Capital Guaranteed Investment Bond
 includes purchase by the employer of an
annuity on behalf of the worker
 excludes purchases paid on a worker's
policy where the company is the ultimate
beneficiary.
Living away from home allowance
A payment made by an employer to a worker
on the grounds that the circumstance of a
particular employment event (i.e. unable to
return home at night) requires the worker to
use accommodation at a place other than their
normal place of residence where the employer
is bound by an award, or registered industrial
agreement or industrial agreement pursuant to
an award, to make the payment to a worker.
Excludes payment(s) which is a reimbursement
to the worker for specific expenditure. From 1
February 1993, Living away from home
allowance is to be considered as an
accommodation allowance (see
Accommodation allowance).
Loadings
Amounts paid above usual salary or wages to
the benefit of a worker for specific work-related
circumstances such as leave loading, overtime,
remote locations, dangerous work etc.
Locality allowance
Paid to or for the benefit of a worker as
compensation for residing and/or working in a
distant, unpleasant or remote location.
Long service leave
Payments made as recognition of a designated
number of years of service. Employer
contributions to the Long Service Leave Board
or any other retirement fund likely to benefit
workers individually or collectively are included.
Lump sums paid where the long service leave
had fully accrued prior to 30 September 1987
are excluded. From 1 July 1992 payments as a
contribution to a fund are excluded if they
relate to redundancy/severance payments to a
worker.
Meal allowance
An amount paid to a worker to provide a meal
when work is performed inside or outside the
usual hours of work. The payment attracts a
premium whether or not the worker actually
purchases a meal. Excluded is a payment that is
a reimbursement to the worker for specific and
actual expenditure.
Motor vehicle allowance
A payment to a worker for using their own
motor vehicle in the course of their
employment.
Excluded is a payment in respect of the use of
the worker’s own motor vehicle in the course of
employment, for the financial year concerned,
at a rate that does not exceed:
i) the rate prescribed by the regulations
under section 28-25 of the Income Tax
Assessment Act 1997 of the
Commonwealth for calculating a
deduction for car expenses for a large
car using the ‘cents per kilometre
method’
ii) if no rate is prescribed as referred to in i)
above, the rate prescribed by the
regulations under the Pay-roll Tax Act
2009 for each kilometre actually
travelled in the course of and for the
purposes of that employment.
A payment by way of a motor vehicle is not
included if the payment is made at the rate not
exceeding the relevant rate for a particular
period as determined by the Commissioner of
Taxation of the Commonwealth or if no
determination is in force, the rate prescribed by
the regulations under the Pay-roll Tax Act 2009.
This rate is determined normally in June each
year and sets the amount to operate from 1
July.
The following table sets out the rate for the
purposes of ‘motor vehicle allowance’ in the
calculation of ‘remuneration’ for the purposes
of the premium payable by an employer under
the Return to Work Act 2014.
Effective date
1 July 2014 (onwards)
1 July 2009 to 30 June
2014
1 August 2008 to 30 June
2009
Motor vehicle allowance
not exceeding
77c per km
75c per km
70c per km
Other allowances
Any other allowance, not otherwise itemised, as
a reward to a worker in the form of a payment
made to or for the benefit of a worker. Excluded
is a payment(s) that is a reimbursement to the
worker for specific expenditure.
Over award payment
A payment that relates to an amount paid,
which is above the basic rate set down by an
industrial award applicable to that worker.
Overtime allowance
An amount paid that the worker may retain
whether or not any overtime is worked. The
payment may be in lieu of any contingency to
work outside normal working hours.
Paid parental leave
The payment of normal salary or wages to a
worker to cover any period the worker was
absent from work due to employer paid
parental leave. Excluded are all payments to or
for the benefit of a worker as a consequence of
a worker’s eligibility to a payment by way of a
determination in terms of the Paid Parental
Leave Scheme under the Paid Parental Leave
Act 2010 of the Commonwealth.
Penalty rates
An amount paid for work performed outside
the usual structure of a working day or week
e.g. shift-work penalty rates. The concept differs
from overtime in that the usual quantity of
hours would tend to be worked but the work
would be carried out by a different
arrangement of shifts, or in a workplace with
varying conditions.
Personal accident and sickness insurance
An amount paid to or for the benefit of a
worker to affect or maintain insurance to cover
the contingency of loss of wages or other
income due to accident, illness or death
through an accident. Excluded are proceeds of
an insurance claim or where the employer is the
ultimate beneficiary.
Piece work payments
Productivity-based payments made to a worker
at an agreed rate per item produced, assembled
or fabricated by that worker.
Qualifications allowance
An amount paid in recognition of any academic
or technical qualification or attained level of
competence possessed by the worker e.g.
degree, diploma, certificate or level of
specialised experience.
Reimbursement payments
Excluded are payments for reimbursement to a
worker for payments or expenses actually made
or incurred by a worker for goods or services
for, or on behalf of, an employer or acquired by
or provided to a worker in the course of, and
for the purposes of, work performed by the
worker for that employer.
Remote area allowance
An amount paid to or for the benefit of a
worker for any inconvenience experienced or
expected to be experienced while work is
performed in any area lacking facilities or
access to amenities and services, e.g. desert
mining camp, cattle station, Antarctic base. The
payment is included whether or not the worker
actually works in a remote area.
Rental allowance
An amount paid to or for the benefit of a
worker to alleviate the cost to the worker of
obtaining rented accommodation. The payment
is included whether or not the worker takes up
residence in rented premises.
Representation allowance
An amount paid to cover time and expense
which has been or may be incurred by the
worker in the capacity of having to represent,
deputise or act as proxy for the employer in any
conference, meeting, negotiation or businessrelated discussion for that employer.
Salary
Payments made to a worker for work performed
over a set period of time. The term is
interchangeable with wages (see wages). This
often includes loadings, above-award
payments, overtime or out-of-hours work, and
is often distinguished by pay periods of greater
than one week.
Salary or wages can be sacrificed into a variety
of benefits including superannuation, car fringe
benefits (providing a car for private use) and
expense payment fringe benefits such as school
fees, childcare costs, loan repayments,
home/desktop or laptop computer. The
ReturnToWorkSA premium is payable on a
worker’s total remuneration package which
includes the amount of salary or wages
sacrificed.
Salary continuance insurance
An amount paid for insurance intended to
provide the worker with continuance of income
in the event of illness or accident not covered
by workers compensation., The payment (e.g.
premium) is included whether or not the worker
actually lodges a claim against the policy.
Excluded are any proceeds of an insurance
claim.
School or education expenses for children,
spouse or dependants of workers
Payments made to or for the benefit of a
worker to cover any fees or expenses of
providing education or tuition at a university,
TAFE or technical college, or any sporting,
religious, commercial, private or state school
not for the trade or business of the employer.
Service Increments
Payments to a worker based upon the length of
service with the employer (e.g. annual
increments in salary or wages). The length of
service may be counted retrospectively where
‘carry over’ arrangements exist, e.g. State Public
Service.
Severance pay
Any payment as a consequence of cessation of
the worker's employment because of
redundancy. The payment may be made in
conjunction with other termination payments.
From 1 July 1992 severance payments are
excluded.
Sick pay
The payment of normal salary or wages to a
worker to cover any period the worker was
absent from work due to accident/illness.
Site allowance
An amount paid to provide for work having to
be performed at a particular location e.g.
mining camp, overseas, another office or
factory, or any distant, dangerous or
inconvenient location. The allowance is included
whether or not it is actually spent by the
worker.
Skill allowance
An amount paid in recognition of any skill
brought to the job or any special aptitude
displayed, e.g. the command of another
language useful to the job, the ability to drive a
forklift or operate a crane.
Standby or on call allowance
An amount paid for being prepared to work,
upon request, outside usual working hours, or
remaining near a telephone or pager to receive
any such request. This may be in addition to any
overtime paid.
Study allowance
An amount paid as an incentive to study, or to
cover the costs of any education or tuition. The
allowance is included whether or not the worker
has incurred any costs of study.
Superannuation contributions
Any payment including a premium or lump sum
paid to a superannuation fund or retirement
annuity plan for the benefit of a worker.
Includes employer contributions under the
Superannuation Guarantee legislation,
employer contributions under an award,
additional employer contributions and
employer contributions forming part of a
worker's salary sacrifice arrangement,.
Supplementary payments
Any payment or allowance made to or for the
benefit of, a worker in addition to the worker's
usual salary or wages.
Telephone allowance
An amount paid to meet the cost of a telephone
connected to the worker's residence or to
compensate the worker for use of the
telephone for the employer's business. Excluded
are payments that are a reimbursement to the
worker for specific expenditure.
Termination payments
An amount paid to, or for the benefit of, a
worker as a consequence of cessation of the
worker's employment. This term usually applies
to payments of accrued salary or wages, unpaid
commissions, and unused holiday pay and
unused long service leave. A payment may be
associated with severance/redundancy.
Excluded from 1 July 1992 is an amount paid to
or for the benefit of a worker because of
cessation of employment, either as termination
payment or redundancy/severance pay or
‘eligible termination payment’ as defined in the
Commonwealth Income Tax assessment Act,
1997.
Tool allowance
An amount paid to pay the cost of any tools,
implements or instruments, which the worker
may purchase for use by the worker in the
course of the worker's employment. The
allowance is included whether or not the worker
actually purchases any tools. Excludes the cost
of tools provided by the employer
Travelling allowance
A payment made to cover the contingency of
any travel costs. The allowance is included
whether or not the worker actually uses it for
the purpose of travel. From 1 February 1993 a
travelling allowance, subject to meeting
particular criteria, is to be considered as an
accommodation allowance. Excludes fares for
business travel paid by the employer or
payments that are a reimbursement to the
worker for specific expenditure.
Uniform allowance
An amount paid to enable the worker to
purchase or maintain a uniform or an item of
corporate clothing. The allowance is included
whether or not the worker actually uses the
allowance for that purpose. Excluded are
payments that are a reimbursement to the
worker for specific expenditure.
Wages
Payments made to a worker for work performed
over a set period of time. The term is
interchangeable with salary.
Workers compensation payments
Payments made as compensation by way of
income maintenance (i.e. a payment in
accordance with section 64(5) under the Return
to Work Act 2014) are excluded.
Disclaimer
The information produced by ReturnToWorkSA in this publication is correct at the time of printing and is
provided as general information only. In utilising general information about workplace health and safety and
work injury management, the specific issues relevant to your workplace should always be considered. This
publication is not intended as a substitute for the requirements of the Return to Work Act 2014 or the Work
Health and Safety Act 2012.